FEDRAC MIN 08-23-2011Y CITY OF
Federal Way
City Council
FINANCE/ECONOMIC DEVELOPMENT/REGIONAL AFFAIRS COMMITTEE
[FEDRAC]
Tuesday, August 23, 2011
5:30 p.m.
Meeting Summary
(Preliminary until approved)
1. CALL TO ORDER
2. PUBLIC COMMENT
3. COMMITTEE BUSINESS
Topic Title /Description Presenter
A . Approval of Minutes: July 26, 2011 S. Cain
:37
B. Solid Waste & Recycling 2012 -2013 Grant Approvals R. Van Orsow
1:10
Federal Way City Hall
Hylebos Room
Action
Page* or Discussion
2 Action
7 Action
H. Vouchers T. Kraus 169 Action
36:14 9/6 Consent
I. 2012 Legislative session's Capital Budget Request B. Enge 199 Discussion
6:42 No action required
"Additional materials may also be distributed for review /action during the meeting
4. OTHER:
5. FUTURE AGENDA ITEMS:
6. NEXT MEETING: Tuesday, September 27, 2011
Committee Members:
Mike Park, Chair
Jeanne Burbidge
Jack Dovey
City Staff:
Bryant Enge, Administrative Services Director
Steve Cain, Executive Assistant
253 835 -2402
9/6 Consent
C.
Waste Management Contract Amendment
R. Van Orsow
14
Action
2:43
9/6 Consent
D.
WAPTA - Auto Theft Prevention Grant Program
Cmdr Neal
118
Action
14:11
9/6 Consent
E.
2011/2012 Mid - Biennium Budget Adjustment Calendar
T. Kraus
138
Discussion
17:07
9/6 Council
Business
F.
Financial Controls Update
T. Kraus
140
Discussion
20:12
No action required
G.
July Monthly Financial Report
T. Kraus
152
Action
22:50
9/6 Consent
H. Vouchers T. Kraus 169 Action
36:14 9/6 Consent
I. 2012 Legislative session's Capital Budget Request B. Enge 199 Discussion
6:42 No action required
"Additional materials may also be distributed for review /action during the meeting
4. OTHER:
5. FUTURE AGENDA ITEMS:
6. NEXT MEETING: Tuesday, September 27, 2011
Committee Members:
Mike Park, Chair
Jeanne Burbidge
Jack Dovey
City Staff:
Bryant Enge, Administrative Services Director
Steve Cain, Executive Assistant
253 835 -2402
t
'' ' FEDRAC August 23, 2011
CITY OF
.� Federal Way
Page 2 of 7
1. CALL TO ORDER
By: Councilmember Park (Committee Chair)
Time: 5:45 Note Meeting start time delayed 15 minutes for Special City Council meeting.
Committee Members in attendance:
Mike Park x- Jeanne Burbidge _x_
Jack Dovey x_ (via conference call)
Other Councilmembers in attendance:
Deputy Mayor DIM Duclos
Councilmember Linda Kochmar
Also: Skip Priest, Mayor
Staff in attendance:
Bryant Enge, Administrative Services Director 253 835 -2510
Steve Cain, Executive Assistant 253 835 -2402
Rob Van Orsow, Solid Waste /Recycling Coordinator
(Laura Moser —Waste Management)
Brian Wilson, Chief of Police
Cary Roe, PW /Parks Director
Tho Kraus, Finance Director
Pat Richardson, City Attorney
2. PUBLIC COMMENT
None
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FEDRAC August 23 2011 Federal Way Page 3 of 7
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3. COMMITTEE BUSINESS
A. Approval of Minutes: July 26, 2011 S. Cain 2 Action
Committee approval
Motion to approve, second and carried 3 -0
B. Solid Waste & Recycling 2012 -2013 Grant Approvals R. Van Orsow 7 Action
9/6 Consent
Discussion: Rob Van Orsow, Solid Waste /Recycling Coordinator
These are ongoing grants programs totaling over $282K. Questioned on the funding and city participation, Rob
explained that these are continuations of three different grants, one requires FW matching funds, the others do not.
The final amounts are subject to the final budgets of the federal agencies.
Grants are vital to the programs and Council approval for receipt and use of the funds is a key element in obtaining the
grants.
Motion to forward Option 1 to September 6 Consent Agenda, second and carried 3 -0
C. Waste Management Contract Amendment R. Van Orsow 14 Action
9/6 Consent
Discussion: Rob Van Orsow, Solid Waste /Recycling Coordinator
Entire amendment is found in August 23 FEDRAC packet, pages 15 through 117.
Items of interest include: introduction of CNG powered collection fleet one year earlier than previous contract, labeling
and sizing of collection containers, collection frequency for compostables and certain recyclable drop -boxes at no cost.
Amendment requires no use of General Funds, no changes in the value of the contract, no changes to rates or fees.
Councilmember Burbidge asked about more frequent pick ups, Rob said that was not discussed in connection with this
agreement or amendment, however, was considered previously but involved extra cost.
Discussion of recycle container sizes and options ensued.
Motion to forward Option 1 to the September 6 Consent Agenda, second and carried 3 -0
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FEDRAC Au
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I. 2012 Legislative session's Capital Budget Request B. Enge 199 Discussion
(This item is out of sequence, requested by B. Enge) No action required
Discussion: Cary Roe, PW /Parks Director
Senator Eide is working on the 2012 budget and is willing to seek capital budget money to help Lakehaven Utility District
and the City upgrade water /sewer capacity in city center in anticipation of development of the AMC site. In the
committee members' discussion, it was noted that this proactive process is a new approach for Senator Eide. The
estimated costs of $6M and the logistics were examined, along with the participation by the state with both the city and
Lakehaven. The city will submit a request for state funds.
The Committee thanked Cary for the information.
D. WAPTA - Auto Theft Prevention Grant Program Cmdr Neal 118 Action
9/6 Consent
Discussion: Brian Wilson, Chief of Police
This is a $1.6M grant to the city for 2011 -2013. Part of a regional effort with multiple agencies. FWPD supplies
supervision and support. There are several taskforces in state, this one is considered the best and is supervised by Lt.
Grossnickel.
Office is in Des Moines and Kent assumes fiscal responsibility. Auburn and others share intelligence.
Motion to forward to September 6 Consent Agenda, second and carried 3 -0
E. 2011/2012 Mid - Biennium Budget Adjustment Calendar T. Kraus 138 Discussion
No action required
Discussion: Tho Kraus, Finance Director
Tho presented the budget calendar, which is subject to additional refinements.
The Chair questioned why doing calendar earlier than usual and Tho responds that budget done earlier so moved it up
one Council Meeting.
Councilmember Duclos commented that Council consideration could be delayed if there was a problem.
CITY OF
FEDRAC August 23, 2011 ti Federal Way Page 5 of 7
F. Financial Controls Update T. Kraus 140 Discussion
No action required
Discussion: Tho Kraus, Finance Director
Tho presented detailed information on the City's internal controls, by category. Written synopsis of the methods and
procedures the city uses to control how funds are received, safeguarded, handled, dispersed and reported.
The Committee Members felt it was good to have the information in writing and thanked Finance Director Kraus.
G. July Monthly Financial Report T. Kraus 152 Action
9/6 Consent
Discussion: Tho Kraus, Finance Director
Year -to -date July sales tax including amnesty payments of $85K is up $97K or 1.6% compared to budget and up $121K or 2%
compared to prior year. Excluding amnesty payment, sales tax is up $11K or 0.2% compared to budget and up $35K or 0.6%
compared to prior year.
The preliminary August sales tax distribution is $965K and is $15K or 1.6% below the monthly budget and $43K or 4.2% below
August 2010. Year -to -date August sales tax, including amnesty payments of $85K is up $81K or 1.1% compared to budget and up
$79K or 1.1% compared to prior year._Excluding amnesty payment, year -to -date August sales tax is down $4K or 0.1% compared to
budget and down $7K or 0.1 compared to prior year. The major variances compared to year -to -date 2010 are: Retail Sales is down
$15K or 0.4% (one major retailer alone was down $46K); Services is down $52K or 3% (received $ in 2010 from state audit of St
Francis and Wild Waves); Construction is up $106K or 18% (Triangle Project); Information is down $48K or 12% (received $ in 2010
from state audit of telecommunications provider and decreases from other providers).
Community Development building permits and fees year -to -date revenues is down $154K compared to budget and down $175K
compared to prior year. Year -to -date collections total $610K or 49% of annual budget of $1,242K. Public Works permits and
development review fees year -to -date revenues is down $25K compared to budget and prior year. Year -to -date collections total
$168K or 50% of annual budget of $333K. These revenues were not adjusted during the preliminary mid - biennium review but will
be considered during the formal mid - biennium adjustment process.
Year -to -date red light photo net revenues total $655K which is $109K or 14% below prior year. Red light photo revenues began
decreasing in earlier this year — total decrease during March thru June was $74K or 15 %. July net revenues (vendor payment
estimated) is down $134K or 73% compared to prior year, due to: School zone violations in the Saghalie area were not issued due to
equipment malfunction. The City's Public Works Traffic Division and ATS are working together to address this issue;
miscommunication by ATS staff to the City's Police Department regarding the time line for traffic officers to review and respond to
ATS whether the violation is valid or rejected. Initially our police department understood from ATS that they had 14 days to respond
with a decision and it turns out the 14 days is the enforcement date so ATS has to postmark the citation by the 14` day. The City has
followed up with ATS to determine what the exact timing is and ATS informally responded they need 1 to 2 days notice to get the
notices out. is currently reviewing contract language and will incorporate changes to address this issue; and expected decrease in
the number of violations over time because of red light photo implementation. The City's goal is improving safety; it is working and
as a result revenues will be decreasing moving forward.
Councilmember Duclos inquired on the animal services and how that was going. Kraus stated animal services is still tracking as
expected. The preliminary mid- biennium review anticipates that animal licenses would come in at 50% of projected revenues.
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FEDRAC August 23, 2011 .� Federal Way Page 6 of 7
On the expenditure side, all departments and including jail services reflect positive variances. The savings may be carried over to
next year. Jail is currently $95K or 8% below budget as a result of using the Chelan jail in 2011 instead of Yakima.
Federal Way Community Center year -to -date revenues are exceeding year -to -date budget by $31K or 3 %. Year -to -date expenditures
are below budget by $36K or 3 %. Through July, $172K or 30% of the annual utility tax funding of $590K has been used for
operations. FWCC budgeted ending fund balance is $890K, reserved for equipment replacement and capital maintenance. As a
follow -up to Councilmember Duclos's inquiry at the last meeting regarding FWCC capital reserves: Finance has completed the
capital reserves analysis and determined that approximately $126K in reserves accumulation is needed annually just for replacement
of equipment meeting the $1,000 purchase price threshold. Total accumulated equipment reserves at the end of 2011 should be
$590K. Budgeted FWCC reserves for equipment replacement and capital maintenance is $890K. It is important to note the $890K
balance is for both equipment replacement and capital maintenance of the facility and that the utility tax funding directed at
operations and capital reserves is based on the balance of 1% utility tax after debt service. In some years, such as is the case in this
biennium, annual accumulation of capital reserves may be below what is needed for equipment replacement. Assuming equipment
is replaced according to the current estimated useful life, at the end of $2011, $72K of equipment would be replaced. Also, as a
follow -up to Councilmember Kochmar's comment at the last meeting regarding Group Health paying for memberships for senior
citizens or people they prescribe exercise classes to and if it was true if we should be contacting Virginia Mason and other providers
in the area to see if they are interested and that we should be tapping into that: Parks staff stated they have a new alliance with
Silver Sneakers. Silver Sneakers is a membership incentive for individuals 65 +, on Medicare and with supplemental insurance
through one of the following organizations — Aetna, Columbia Community Care, Essence, Group Health Cooperative, Humana,
Spokane Community Care and Well point- National. According to Parks staff, Silver Sneakers has a very aggressive marketing plan,
including marketing to individuals and organizations within our community that would benefit from their program, and direct them
to the facility that offers health and fitness services. The Community Center will be the only facility in Federal Way offering the Silver
Sneaker benefit.
Councilmember Kochmar inquired on the advertisement of FWCC. Kraus stated Parks staff is working with Chris Carrel on the media
side. Councilmember Duclos inquired regarding Silver Sneakers and if there was unfair competition with the other provider
networks. City Attorney Richardson stated that not knowing how it is set up, it is not unfair competition because they chose FWCC.
Councilmember Duclos asked how it was set up — staff will follow up. Councilmember Kochmar inquired how weddings were doing
at the FWCC — staff will also follow -up on this item.
Motion to move to September 6 Consent Agenda, second and carried 3 -0
H. Vouchers T. Kraus 169 Action
9/6 Consent
Discussion: Tho Kraus, Finance Director
Tho presented the vouchers to the committee and the Chair called for questions. No questions.
Motion to adopt, second and carried 3-0
FEDRAC August 23, 2011
4. OTHER: , None
5. FUTURE AGENDA ITEMS:
CITY OF
Federal Way
6. NEXT MEETING: Tuesday, September 27, 2011
Meeting adjourned 6:22 p.m.
COMMITTEE APPROVAL:
Co� ark
mittee Chair
Page 7 of 7
Attest:'
Steve Cain, Executive Assistant
Jeanne Burbidge
Committee Member